Question 1

Power distance concerns the way the culture deals with unequal distribution of power.

Accepted Answer

Power distance is a cultural dimension that refers to the level of acceptance and expectation for unequal distribution of power in a society or organization. It can range from high power distance, where there is a strong respect for authority and hierarchy, to low power distance, where there is a more egalitarian approach to power and decision-making.

Question 2

A culture with a long-term orientation will have trainees who are likely to accept development plans and assignments.

Accepted Answer

In a culture with a long-term orientation, individuals are more focused on future goals and are willing to invest time and effort into developing skills and knowledge. Therefore, trainees in such a culture are likely to accept development plans and assignments.

Question 3

Cross-cultural training requires developing a greater awareness of one's own culture, too.

Accepted Answer

Cross-cultural training involves understanding and respecting different cultures, but also requires individuals to reflect on and examine their own cultural biases and beliefs. This self-awareness is crucial in order to effectively communicate and interact with individuals from other cultures.

Question 4

A host country is a country, other than the parent country, in which an organization operates a facility.

Accepted Answer

A host country is a country where an organization operates a facility other than its parent country.

Question 5

The most important influence on international HRM is the culture of the country in which a facility is located.

Accepted Answer

The culture of the country has a significant impact on the HRM policies and practices adopted by companies operating in that country. Cultural factors such as beliefs, values, norms, and attitudes towards work, gender roles, and power distance affect recruitment, selection, training, performance appraisal, compensation, and employee relations practices. Therefore, companies operating in different countries must adapt to the cultural context if they want to succeed in managing their human resources effectively.

Question 6

In countries with large power distances, people address one another with first names.

Accepted Answer

In countries with large power distances, there is typically a greater emphasis on showing respect for those of higher status or authority. This can manifest in the use of titles or formal language, rather than first names.

Question 7

Cultural differences are a disadvantage to global organizations.

Accepted Answer

Cultural differences can actually be an advantage to global organizations. By understanding and respecting different cultures, organizations can tap into new markets, improve communication with global clients and customers, and develop innovative solutions by drawing upon diverse perspectives. However, managing cultural differences can also be a challenge, and organizations need to invest in cross-cultural training and sensitivity to maximize the benefits.

Question 8

Ample opportunities for educational development are provided in capitalist economic systems because education is free for students.

Accepted Answer

In most capitalist economic systems, education is not necessarily free for students, and there may be significant financial barriers to accessing high-quality education. However, some capitalist countries do have robust systems of public education or provide financial assistance for students in need. Additionally, the market-based nature of capitalist economies can lead to the creation of specialized educational programs and institutions that cater to specific industries or skills, allowing individuals to pursue educational and career paths tailored to their interests and strengths.

Question 9

Expatriates are employees from a country other than the parent country or the host country.

Accepted Answer

Expatriates are employees from the parent country who are working in a host country, not from a third country.

Question 10

Hiring employees from outside the host country is an option many companies take when the local labor market does not offer enough qualified people.

Accepted Answer

This statement is true. Companies often look for talent from other countries when they don't find the required skills in the local labor market. This is a common practice followed by companies in various industries to overcome the skills shortage and ensure the growth of their business.

Question 11

According to research, employees who are extroverted, agreeable, and conscientious are most successful at completing overseas assignments.

Accepted Answer

Research has shown that employees who possess certain personality traits, such as extroversion, agreeableness, and conscientiousness, are more likely to succeed in overseas assignments due to their ability to adjust to new environments, build relationships with colleagues, and effectively navigate cultural differences.

Question 12

U.S. organizations exert more centralized control over labor relations in the various countries where they operate when compared with European organizations.

Accepted Answer

This is because U.S. organizations typically adhere to a more standardized approach to managing labor relations and often have a stronger emphasis on hierarchy and top-down decision making. In contrast, European organizations may be more decentralized and open to collaboration and consensus building among employees and management.

Question 13

Compared with other countries, the United States allows employers much latitude in reducing their workforce.

Accepted Answer

The United States has more flexible labor laws compared to other countries, allowing employers to have more freedom in reducing their workforce. However, there are still certain legal requirements that employers must follow, such as providing notice and compensation to employees who are laid off.

Question 14

A country's political system does not usually affect human resource management.

Accepted Answer

A country's political system can have a significant impact on human resource management policies and practices, such as regulations related to labor laws, immigration policies, and government involvement in employee welfare programs.

Question 15

High uncertainty avoidance refers to a strong cultural preference for structured situations.

Accepted Answer

High uncertainty avoidance cultures prefer clear rules, guidelines, and systems in order to avoid ambiguous or unpredictable situations.

Question 16

The usual way that a company begins to enter foreign markets is by exporting, or shipping, domestically produced items to other countries to be sold there.

Accepted Answer

This statement is true. Exporting is a common first step for companies seeking to enter foreign markets, as it allows them to test the waters and establish a presence without making large investments in facilities or operations overseas.

Question 17

The specific methods of performance management that work in one country may fail in another, while general principles of performance management may apply in most countries.

Accepted Answer

This statement is true. Cultural differences, language barriers, legal and regulatory differences, and other factors can affect the effectiveness of specific performance management methods in different countries. However, general principles of performance management, such as setting clear goals, providing regular feedback, and offering opportunities for employee development, can be effective in most countries.

Question 18

Even if employees persist and continue learning about their host country's culture, they rarely recover from culture shock.

Accepted Answer

While culture shock can be a difficult and challenging experience, with patience and persistence, employees can often recover and adjust to their host country's culture.

Question 19

While training expatriates, trainers are expected to be authoritarian and controlling of the session in cultures low in power distance.

Accepted Answer

In cultures low in power distance, trainers are expected to be more egalitarian and collaborative, rather than authoritarian and controlling.

Question 20

Companies usually prefer hiring third-country nationals for filling positions in host-countries.

Accepted Answer

Companies often prefer hiring host-country nationals to fill positions in host countries due to their familiarity with the local culture, language, and business practices, which can be more cost-effective and efficient than hiring third-country nationals.

Quiz 16: Managing Human Resources Globally